Which of the Following Audit Procedures Is Least Likely to Detect

question 49

Multiple Choice

Which of the following audit procedures is least likely to detect an unrecorded liability?

• A)Analysis and re-computation of depreciation expense.
• B)Analysis and re-computation of interest expense.
• C)Reading of the minutes of meetings of the board of directors.
• D)Analysis of response to a bank confirmation request.

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Definitions:

Raw Materials

Basic materials used in the production process, transformed into finished goods through manufacturing or processing.

Computer Board

A printed circuit board used in a computer to which the processor, RAM, and other components are attached.

True Variable Cost

Costs that vary directly and proportionally with the level of production or activity within a business.

Fixed Cost

Expenses that do not change in total despite fluctuations in production or sales volume.